but not jim's big gamble. it was 1987 and see egg "phantom" moved jim, a farmer wall street trader, to consider a big investment in bringing london's "faphantom" to broadwa. >> black monday. the worst day ever on wall street. the dow lost 508 points in one day. >> with wall street crashing, jim and his business partner invested half a million dollars to help bring the $8 million musical "phantom" to broadway. >> and then it turned out to be something unbelievable, extraordinary. >> but what a day that must have been to put this together on a day that the market was down so much. what i have learned is those investors who want to bet on broadway do it because they love it. they want to be there. they are not expecting a huge return. the most successful shows have been those with a story. not necessarily with a big superstar or over the top production. don't miss my special tonight,

it premieres on cnbc, 9:00 p.m. before we go tonight, let's look at the day on wall street. a downer today. we pulled back from 14,000, which we hit on friday. nasdaq gave up 48 points and the s&p 500 down about 18 points. have a great night, everybody. see you tomorrow on "the closing bell." stay with cnbc. "fast money" begins right now. live from the nasdaq market site in new york city's times square, i'm melissa lee. altitude sickness. stocks pull back. monopoly money. if you had a billion dollars, would you put into houses? we have a guest who is doing just that. and jpmorgan versus citigroup. while karen is cheating on jamie dimon.

first, let's get to our top four trades. pete? >> ups. i was focusing on them for multiple reasons. that tnt deal for tnt express over in europe, obviously $7 billion is now back to ups. they are going to have to use that in different ways. the dividend, the other share buy-bayi buy-backs. it's pulled back slightly since that time. but this remains a very, very interesting stock. and today, the options got even more interesting. seller of april calls, buyer of the july upside calls. this is that roll from one out to the other, looking for a little bit of time but more upside to happen. >> and grasso, you were watching levels on the s&p 500, the biggest decline so far this year. >> right. you look at the weekly level. you have to look at the weekly low from last week. 1496. closed right below that. we haven't seen that low breach. most of the guys looking at the high fliers, i'm look google, amazon, apple. once you see the overall market

start to tick in, those are the most susceptible. i'm long all three. looking forward to the rest of the week. >> karen, what is your trade today? >> you know, not a whole lot. we don't trade that much. but i did take a little tick in timken. a name we've liked for a long time. there should be an event this week. there's a deadline looming and they need to say whether or not they're going to submit slate for this year's annual meeting. that's an event this week. >> and beeks? >> archer daniels, adm. it's the best short out there. they have earnings tomorrow morning. when you look at the ethanol spreads, they are losing money again. they also transport their corn down the mississippi river. we talked about that mississippi queen trade and how the mississippi is very low. they are going to have to put the corn on the rail cars. i think adm, if we have bad earnings tomorrow, or even good, it gaps lower, you get out or sell more short. >> and the key here, all of you are making trades today though we had the big pull back, the

doubts about europe and how it's going to affect the u.s. markets, you still found value here to play. >> absolutely, no doubt. all you have to do is go back to friday, the job numbers, we wiped out friday with today. it's basically a doefrover right now. plenty of opportunities. i think we are all looking for the best opportunities in the marketplace today. i still look at some of those names and the names i found are names performing already, at 52-week highs. >> the mow mmentum trades in th market. >> yeah. >> the biggest bull on the street in 2012, but where does he see the markets going in 2013? let's welcome barry bannister. barry, great to see you once again. >> yes, thank you. >> you see -- s&p 500, 1600. how will we get there? >> well, that was our target since may 29th. we thought we'd hit it in '12. we pushed it into the first half of '13. it's p.e. expansion on the more cyclical parts of the economy. if you look at energy materials, industrials, officialfinancials

trade at lower p.e.s, and we think it's not that bad. >> once we hit 1600, barry, you think that is going to be the top in the markets for 2013, is that correct? >> we don't know for sure if that's going to be the top. that's our full-year target. we thought it would be hit in the first half. we'll have to reassess things. i do think the fed is running red hot. they're going to continue with q.e. we have to watch gasoline prices and the q.e. and the effect on the dollar. there are a lot of moving parts. but overall, we're pretty pleased and we would buy on these dips. >> barry, if it's been a hunt for return and that's why the market -- bonds, money is coming into equity money, why have we not seen utilities act accordingly or reversion to the mean, i should say, and do you see that coming back in or do you see utilities being out of favor for extended periods of time? >> you know, i noticed that after the budget deal was struck, the telco services and the ewe till times rallied.

a lot of people thought we would go to ordinary income on dividends. when we did not and we got the preferential rate, they rallied. >> hey, barry, brian kelly. i'm curious. we had a 30-year bull market in bonds. now everybody is talking about bond markets selling off. we know that when rates go higher, when either the federal reserve raises rates or go higher, it's tough for the economy. why would bonds selling off be good for the stock market? >> well, a little bit of reinflation is confidence. and it good. the market wants the yields to rise as a sign that deflation has been avoided. if you did a chart of the ten-year yield for the last 25 years, we could rise almost to 3% before you'd even consider breaking the down trend. this market's been in a bull market for bond yields for about three decades, so, 3% is just top of trend. >> barry, let's assume you are right on 1600. which sector will get us there? i mean, if i had to put a dollar to work right now, where would i put it? >> energy was our, one of our

favorites. we've liked financials as the rally broadens out to smaller and mid-cap financials. banks, brokers and so on. the big banks and big brokers already had a nice move. we also had been in the mind that energy would feed into some of the industrial names. and basic materials. the dollar weakness certainly helps. >> barry, good to see you. thanks for your time. >> thank you. >> let's get a market flash. and of course we are watching shares of yum. josh lipton back at headquarters with the latest. >> melissa, no sugar-coating here. yum brands warning that that chicken scare in china will negatively impact its 2013 earnings. investors selling the restaurant operator afterhours. the company did beat on the bottom and tom line top lines current quarter. but the outlook for china, all that negative publicity there surrounding yum's chicken supply. the current negative sales trend in its china kfc business will

adversely impact 2013 eps. melissa, back to you. >> josh, thank you. does seem that the china impact is lasting to 2013. this is more than just a china story. this is a p.r. problem for yum in china. >> it is, though i really hope they can get past it. such a great company. it's a little too rich for me, but i think -- i actually think they will be able to get past it, i do. >> could be a buying opportunity. b.k., you are an expert in the meat space -- >> i have carved out quite a career. i looked at yum at a proxy for china, in the growth was picking up or slowing don't. i don't think you can do that anymore. this is a p.r. problem. they will get past it, but for now, you can't trade it as a china proxy anymore. i do not think it's a buying opportunity. >> you don't look at the guidance, say, oh, bad news for nike, the other players in china -- >> this has been a problem -- i've been wrong on this name for awhile. i thought they would get over this issue they've had now for

awhile, with the concern about the chicken. stock sold off from 70 to 65, now trading closer to 60, 61. seems like sooner or later they can get past that, but i believe this is an image problem right now. look at starbucks, the other names that continue to perform in china. i don't think you can read too much into this. >> and shares of mcdonald's too. they have the problem with the chicken suppliers. not as big of a percentage for mcdonald's as it is for yum, but want to watch in the afterhours session. let's hit pops and drops, the big movers of the day. kick it off here with a drop for dell, down 3%. pete? >> this is part of the latest saga going on. it used to be best buy, now we've moved to dell. something over 14, the talks now 13.50, maybe 13.75, $20 billion plus deal. stay away. don't get near this name. >> drop for tiffany. grasso? >> the whole space has been weak. i would have thought it would

have bounced back. the whole space, i'm saying. it hasn't been able to. stay away. coach looks worse technically than tiffany but i wouldn't buy either. >> pop for fifth and pacific. karen? >> only managed to be up 1% on the day, though it was up more than 4% on stories they're going to be looking to sell juicy c coutu couture. i this valuation, i would not step in. >> big pop for netflix, beekers. >> it's amazing how quickly the sentiment has changed on this stock. they had some, you know, good earning, big short interest. here's a name i think, you know, above 175, we might get that breakout. but above that, i'd start to take some profits on it again. i think this thing has run too far, too fast. >> and a pop here for kids. kids. something fishy is happening at mcdonald's. they are attempting to reel in fresh young customers with its first new happy meal item in a decade. fish mcbites. the seafood snacks is aimed at

netting profits during lent but could become a permanent staple if sales go swimmingly. >> get it hooked early. >> you worked on that all day, didn't you. all day. all day. coming up next, jpmorgan versus citi. why karen is now favors one stock over the other. plus, why you may want to consider going on a home buying spree with your extra cash. and later, faceweek's about face. shares receiving off over the past week. one stock, two opinions, one street fight. back right after this.ou er) scor clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

welcome back to "fast money." we're watching the ratings agencies, the worst performers on the s&p 500 today. cnbc, as well as other news outlets reporting that federal and state prosecutors planning on bringing several charges against stan ard and poor's for wrong doing in its ratings of mortgage bonds prior to 2008. s&p saying the lawsuit would be entirely without factual or legal merit. still waiting for the actual details of the lawsuit from the doj. mcgraw-hill, owner of s&p, suffers its second-biggest one day drop ever. it's rival, moody's, falls double digits.

melissa, back to you. >> josh. karen, you are long -- >> i really like this name. this is obviously not what we were looking for. i really thought we wouldn't see a big deal out of this. a settlement, i don't know if this is negotiating or they're going to take it to court. that may have well be the outcome. as much as i love the name, i would not jump in right here to think, okay, i have a good handle on it after two hours, would not be realistic. i think you got to wait, though i do love the name. even though it has discounted a multibillion dollar aftertax settlement already. >> walk me through what the trade is like. i mean, when you see that headline cross and you know there's going to be some sort of court action or settlement talk, something prolonged that we don't have a good sense. do you start trimming that position immediately? >> well, it depends. we have positioned some in calls which are long-dated leaps but they will expire next month. and then we have some in stock. there is another event that will

happen very shortly, which is why we're in and i think that will continue. which is the sale of education, i expect that to close. but it is not a good feeling. i have to say, one of my least favorite feelings, seeing a headline like that. >> does anyone find the timing is really terrible? >> conspiracy theorist. enlighten us. >> s&p said they were going have another downgrade if it was a short-term patch, correct? >> uh-huh. >> i'm telling you. >> go on. >> so, now we haven't seen the downgrade and now we're waiting on the next level of debt ceiling debate or the sequestration and you start to see this headline. is this a warning to the other rating agencies -- >> trying to smack them down before -- >> if i were a conspiracy guy, that's -- >> if you were. lay it out. >> don't paint me with that brush. but if i were, this is what i would be saying. >> let's let that sit out there, just sit there. one of wall street's most well-known banking analysts

surging you to buy all of the banks. here's what he said earlier today. >> you should be buying goldman sachs, bank of america, u.s. bank corp, you should be buying comerica. what you are going to get is continuous upearnings, inkreeflss in dividends, higher stock buy-back programs and record results. >> was he bullish? karen says to buy one bank stock in particular and she is turning her back on her belove fd jamie dimon. >> i'm not turning my back on him. you know, it's still as strong between us as it ever was, only -- >> should we slap another ceo in that little bubble? >> no, no, you know, he is -- >> this looks like the godaddy ad. just get a little closer. >> i'm sorry. i don't know if it's having the

intended effect or not. the point of this little feature is that if i had one new dollar to put to work in the financial space, the big money center banks, it would not be in jpmorgan. at these valuations, it would be at citigroup. a couple of reasons why. i'm a value girl, so, i obviously look to valuation. the price to tangible book is significantly lower on citi and i think that difference is, it's more than should be -- there's some premium that should be warranted to jp mo began, the value of that franchise, but it's too big here, this disparity. also, as a price to earnings, we could end up seeing a meaningful boost in ci ti's earnings. though the average hotness of my portfolio would go down as a metric, switching to citi from jpmorgan, i still think actually right now, citi is the better play than jpmorgan. i'm still long jp morning, but getting long citi, as well.

>> i'm worried about the financials here. at low interest rates, you had an all you can eat loans, all you could want of getting this credit. if rates go higher, it might be the first time in history that the price of a product goes higher and people want more. very unusual for that to happen. >> the net interest margin -- that is getting -- >> that's fine. >> we could see the net interest margin expand, which is the single most important thing -- >> it's the same argument as apple just in reverse. apple margins are going down, but if they sell more product, that's good. so, now -- >> i don't agree this is the biggest loans they could be making. >> it's a demand -- >> they can do whatever they want. >> you can see demand go up. eitherjamie's hot is really the bottom line. >> i don't know why you waited. >> there you go. nice way to end the segment. all right. let's get back -- the markets, of course, having the worst day of 2013. should you still be running with the bulls?

let's check the charts with marian bartels. you think this could continue? >> yes, it could. what we're looking for is a pull-back in february. now everybody is looking for a pull-back, but seasonally, february is one of the weaker months. but it is particularly weak after the presidential election. we brought a chart of the s&p 500, showing the lows of 2009 and how nicely the market has been channeling up into the resistance of the 2007 area. so, it's not surprising we're starting to top around the 1500 level. but we are targeting up near 1550. >> right. as we go throughout each session every day, what is the key level to hold on every session and where do you think we face resistance? is it a 1550, 1500, the bottom? >> the real resistance is between 1500 and 1550. today, we're having a little bit

of problem so, we're starting to see that chap byness. this week, we'll know if we're in a correction. >> in terms of what is fueling this rally, people say the rotation out of bonds into stocks, that's what's fueling this rally. what do you think? >> i don't think it's all out of bonds. we're still seeing flows into the bond market. here, what we brought is, here, you are starting to see the decline in terms of price, in terms of the bonds. here, the markets going up. so, interest rates are going up a little bit. but when we're looking at the ten-year treasury yield, yes, you can technically get it up to around 23, 24, the most would be 25. and we don't really think that that's going to really do that much damage to the market. but it is possible that some retail investors want to stay in fix eed income. they may want to still buy treasuries. that's one of the concerns i have i would still rather own stocks over bonds. but i'm not convinced yet that the great rotation is going to happen -- >> so, the pain isn't great enough to move investors out of bonds to the extent we all think

it's happening. >> that's correct. you're going to have to have a bear market in bonds. down 20% -- >> long ways to go. >> right. and technically, to really say that the bond market, bull market is over. we need rates above 4% on the ten-year. >> let's talk retail as a seasonal play here? >> we're in the middle of nowhere. a little cold here in new york. what do you want to buy when the markets go down? this is the retailing index and i've sicircled every february a march period going back to 2008. this is really the period it didn't work, in '11. typically, the months of february and march are the best back-to-back months for retail. so, even if we're having a decline, we want to own the retailing stocks. >> wow. so, it seems like you would want to own them into the holidays, into that reporting period, but it's not the case. >> that's not the case. you want to buy the retailing stocks like september, october, sell them right before black friday. >> oh. >> and then come back to them in

february and march. >> okay. grasso, what do you make of this analysis. >> i like the analysis, but in the retail space, it's not trading as a whole, so, i would probably go into a target and stores so grocery out of favor, might have a little bit more room to the upside. >> thank you for coming in. let's go to mary thompson with breaking news. >> this has to do with the news that the doj is reportedly expected to sue stan ard and poor's for the ratings and actions it took on mortgage-backed securities prior to the financial crisis. the question is, will other rating agencies be subject to similar law suits? we have a comment from fitch, which is a rival ratings agency, saying, we are unable to comment, as it does not involve us, other than to say we have no reason to believe that fitch is a target of any such action. moody's has declined to comment on this, as well, but keep in mind that all three of the rating agencies were called

before investigators. fitch was not called back. and, of course, pete williams of nbc news reporting that the investigation by the doj is focusing on whether or not some higher ups and s&p actually ignored the warnings from some lower level managers about putting tougher ratings, or, i should say, less or not putting these high ratings that they put on a number of these mortgage-backed securities, which, in the end, were found to be very risky and filled with sub-prime mortgages. back to you. >> mary, thank you. coming up next, the case for going on a home shopping spree. we get it from a real estate titan. he's got big money at stake. but first, all pumped up over facebook. pete and steve clash over whether you should buy shares of the social media giant. that street fight is up next. hello!

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facebook getting soft. shares off more than 13% over the past five sessions, leaving some to question the stamina of facebook's recent rally. the activity sparking a street fight. pete is the bull, steve is the bear tonight. we've got 80 seconds -- >> 80 seconds? >> i think it's 90 seconds. pete, you're up first. >> let's a very difficult bull argument right now. if you are looking at valuation, it's very difficult. but when you look at what they've been able to do, mark zuckerberg came out, everybody wanted him to produce with mobile. he's done exactly that. he doubled it from q-3 to q-4. their ad revenue went up dramatically. that's number one. two, they've got plenty of cash on the balance sheet. when you look at their mobile -- excuse me, their monthly active users, that jumped 25%. well over a billion now. you look at the weekly users -- the daily active users, now almost 700 million. you are talking about plenty of

folks out there using this and the mobile ads, that's where they just passed up on the desk top. that's why i think they have plenty of growth. >> go at 'em, grasso. >> mobile is the most bullish case you can make for facebook right now. but the analysts in the arena are not impressed with the averageusers. they think the numbers are way too high. they should be higher than what they are right now and they need a real search engine. they don't have it. they can't be competitive. the social search doesn't really cut it. valuation is terrible. technically, i think is the -- hard to -- you in front of my camera? >> this is -- this really is the point. if you look at it, start of the month -- >> no, you had your 80 seconds. >> i thought you used yours up. >> you're the bear, but you're saying technically you can buy it. >> only technically. so, you have to be -- >> what? >> half-hearted bear case, grasso. >> very short window here. $28 is your technical balance. if it fails there, you lower it

at 24 bucks. >> grasso just presented the can't lose case. >> what's wrong with that? >> you don't want to lose. you go halfway on each. i mean, that's not the way we play this game. >> yeah, okay. >> b.k., weigh in. >> wow. i mean -- >> which side of me do you agree with? >> grasso's right? >> talking about b.k. and brian here. two people over here. steve -- >> now you're out of time. >> he offered that to me on facebook, if i agree with him, but sadly, i can't. i'd be a bull on facebook. the psychology's changed a bit and i do like the technical. >> so you're with pete and half of grasso. karen? >> i don't know. it's like amazon at 180 or 500. i don't know. it's not even relevant. i think. >> all right. so -- >> anything positive coming out of earnings. how did it -- >> because it ran so fast. that's what i was going to say,

$26 stock, december 31st, right? gets all the way up to $32. there's going to be pull-back. you look at the s&p, up 6% in a month. you expect to see days like today and maybe a few more before you can start moving back up. >> if that was the case, google would not have popped $50, $60 and held it. >> all right. let's leave it here. sorry. pete won on this. half of you won. >> how do you know who won? >> for the fight. for the purposes of this debate. >> it has nothing to do with where the stock will go. >> we'll find out later. >> the baby. all right. let's move on. befting big on the housing sector. legendary investors have invested billions in housing recovery plays. let's take a deeper dive. tom shapiro has invested $2 billion in the housing sector. tom, great to have you with us. >> great. thank you for having me. >> you see buying single family homes and renting those homes, correct? >> yeah, exactly.

>> a lot of people are in the space at this point. you know, you name the big fund, jpmorgan is offering its high net worth investors to do this thing, blackrock is. i'm wondering what the competition is like for these homes since there are so many people allocating a lot of money now to this space. >> yeah, it's fierce. the competition is definitely fierce. i think you have to go back to the fundamentals of why. it's never been such a good time to buy a home. but a lot of people can't buy homes because of the mortgage availability. and so, investors are buying homes because it's exactly the same reason. you get a relatively high rate. a lot of people are pouring right now into the sector and it is concerting. so, we, from our perspective, it's one of the things we do but we look at it as apart of a broad array of things we invest with the residential space. there's a lot of ways of playing the recovery. we've been financing the public build builders, invested $130 million.

we have been doing a lot of the private builder section. we bought 30,000 lots around the country. and we've got about 4,000 homes under construction right now. >> interesting you mention the publicly traded home build earls, as well. i was talking to the ceo of a publicly traded home builder and he said guys moving into this is helping their prices, as well. that's why we're seeing average selling prices continue to go higher in that space. >> huge. it's gotten a lot of the distress inventor. so, the general market is up maybe 4%, 5%, across the country last year. but markets like phoenix, for example, where there were a lot of people buying homes to convert, that market's up 19%. this year. so, it is actually helping to underpin the market. if you can buy an existing home for half the price of what it costs to build a new home, you are building a lot of houses. in markets like las vegas, phoenix that got badly it, it is helping to underpin the market. >> let me ask you, when you buy, go into an area that has a

number of say capital homes, for sale, foreclosures, whatever it might be. when you buy in bulk, do you get a discount on the commission or is there some other arrangement than what you would normally see with a single buyer -- >> we're not going -- i mean, once in awhile we buy off the mls, but that's not generally the way we buy homes. it's bank-owned properlies, buying at the courthouse steps in las vegas and the homes are auctioned off. they auction off a couple of hundred homes a day. we're not generally buying directly from brokers. >> do you buy with all cash and -- what kind of -- >> at this point -- >> do you use leverage? >> at this point we have not. we invested $450 million of capital. not just in buying single family homes but across the space. we have though leverage at this point. >> interest rate rising is not a risk to how you make money -- >> well -- >> or is it? >> you win in a lot of ways, which is what i like about the investment. the thesis is generally, if the market recovers, obviously

you're going to sell the homes, you've made a decent return and you sell it out at a recovery. if we become japan, no growth for ten years, there's no gdp growth, we're going to have a nation of renters. and you're going to have a high cash yielding because that's pretty low interest rate environment. you win that way and take the portfolio public, sell it to a financial institution, so, you kind of win either way. the downside is being able to manage the homes. a lot of people have that on their mind. we have a company to handle that. we make concentrated buys in certain markets. in atlanta, we are buying a lot of homes, in las vegas we are. >> tom, thank you so much for coming back. home to see you again. tom shapiro. b.k., you are out of home builders entirely. why? >> the value is buying the physical houses at this point. wall street's been on this trade for a year. i'm out of xhb. i think you can be out of home depot and lowe's. coming up next, a round of

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welcome back to "fast." sometimes it is tough to buy the losers and sell the winners. let's play a little hold 'em or fold 'em. first up, tyson foods, trading at a five-year high. the company recently reported better than expected earnings and expects chicken consumption to rise. got to go to booekers f beakers. >> i'm going talk about the meat space, once again. my area, apparently. so, i love this trade. i think tyson has more to go. but these prices, i fold them, not because i don't like the stock, but it is straight up. so, fold them. >> fold, okay. clear on that. next up, fedex. five-year high here. bank of america named the shipping giant one of its top stock picks. pety? hold it or fold it? >> hold onto this. we talked about ups earlier. you just mentioned the fact they've been able to raise some of their rates. you can actually hold it. >> all right, so, next up here,

valero energy. four and a half-year high here. grasso, hold 'em or fold they h but i can't say you should be a buyer of this space. if you are in it, you're lucky enough to have these gains. i don't think you should be a buyer right now. fold 'em. >> okay. remember the european dealt crisis? well -- oh. that was a delayed buzzer. the european debt crisis is back. investors getting worried about political uncertainly in spain and italy but should you be buying this noise? let's go off the charts with dennis gartman. dennis, really worried investors was the blowout we saw? spanish yields. the ten-year in particular. >> rates were going -- it depends on what you were looking at. the yield curve has been moving, more and more positive. they had a great auction last

week. six-month and three-month bills in spain went very, very well. the curve got more positively sloped. >>ened you are watching the italian curve, as well. >> that's what's happening in europe, it's happening here in the states, among all of the g-7 countries. you are seeing a positive slope to the curve. helping the banking business. as i like to say, positive slopes to yield curves make geniuses out of otherwise banking idiots. >> don't these banks hold the debt? so, on one side, on one side of it, they are getting helped because the curve is steeper, but they are getting bitten by the bond hollings. >> if you think europe is in very real difficulty, if you think they are going to hell in a hand basket, and i used to think that way. it hasn't done it thus far. it's likely not going to be able to. they've made it safe. >> right, but look at the inter-day moves. >> not a pretty day. >> the market is telling you there's a preb in the european

banks. b.k., come here in, because i know that you don't agree with dennis here. >> right, so, here's -- here, dennis, is my concern. last week, the banks paid back 150 billion your ropes in ltro. that means they freed up collateral. this week, we are starting to see yields sell off. the smart bankers, the genius bankers in this area are selling off their long-term peripheral italian, spanish yields and basically going to be pulling back the reins, not lend anything and create a credit crunch in europe. >> beeks, they're not going to create a credit crunch. it's to nobody's advantage. if you've had a rally in the bond market, would you not be selling some? of course you would be. but as a banker, what you really want to do, you don't want to own debt. you want to make loans. they are going to be making loans -- >> who are they going to make loans to?

26% unemployment in spain. why would you make a loan to anybody in europe right now? >> because things are going to be better two, three, five years from now. everybody wants to make the bet that the world is coming to an end. those who have made that bet in 800 years have made a bad bet. things will be better two years from now than they are right now. that's what banks are there to do. that's what they are doing. can things go -- can things go pear-shaped in the course of the next two, three months, of course. we thought they were going to do that two years ago. >> we're out of time. give me a bottom line. you are buying the european banks in the face of fear. >> if i had to do something in the european community, i would be buying -- i would rather be a buyer of their banks. am i buying them, no. but if you made me do something, that's what i would do. >> dennis, good to see you. >> always good to be seen. >> dennis gartman of the gartman letter. coming up next, a look at revved up trading activity. and cnbc's jane wells,

unplugged. jane? up next, we're going to talk about a billionaire smackdown and who is the real loser in the super bowl? and we're not talking about the 49ers. that and more after the break.

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more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.

chi pot lee is set to report earning, but will they get roasted? let's bring in brian sutland who noticed unusual options action. >> very unusual bearish activity. the last thing i want to think about burr ree taupes after what i ate yesterday. but traders expecting them trade down to $295.20 or $260 a share. so, certainly, as you see the stock contract in its multiples, learning two and a half times earnings, the reason for that, it was growing 10% a quarter, now we're seeing if it's going to be lucky enough to grow 10%, 15% for the whole year. bearish activity. the stock's gotten hammered here, so, certainly a prediction this may happen again. but listen, the short squeeze here, shares 13% of the float right now is short, so, any good news, $1.97 a share is really the high end.

if they beat that, the stock could move higher. that's why they are using options. >> what is the implied move on earnings? >> we have seen the stock trade 12% to the down side last quarter. so, with this bet, we are seeing in between that range here. so, you can get a sizable move mere. you have to be careful and trade it gingerly. i should say. >> all right, brian, thank you. from mobile devices to medical marijuana, we have you covered in the west coast wrap. jane wells joins us from the best coast. jane? >> melissa, wynn announces more winning. they have been cleared for any misconduct. a shareholder lawsuit related to that loan has been dismissed. and iss is recommending shareholders vote him off the board february 22nd. meantime, his suing wynn and japanese regulators are looking at how his company accounted for

profits as it pursued a casino project that will compete with wynn. >> grasso, does any of this matter? >> it certainly does. but the stock has been straight up from $110. i've been waiting to buy it back. i thought i'd get a dip. i'm not seeing a dip. but it does run into resistance around $130. >> jane, the m and a? >> oracle shopping spree continues. latest purchase, acme pact, which makes network equipment. bought for $2.1 billion. this is oracle's largest purchase since buying sun micro. and no, this acme does not make the equipment that wile e. coyote. >> we were all wondering that, jane. pete, you brother flagged some unusual activity. >> right. they were very smart to get

profits out of this whole operation. acme were going for the 24, 25 strikes. they were looking for upside, not knowing what price it would be. but certainly looked suspicious, when you start to see chunks trade in a stock where the options normally don't see very much activity and suddenly you see 1,000 at a time. somebody was very smart or at least had an idea that something might be coming in acme pact. >> jane? >> i thought he had chumps, not chunks. sorry, i was like, whoa, that's kind of mean. okay, speaking of chumps. the super bowl looked like a blowout until the blackout. the blackout in the third quarter, not the electric economy's fault. they're not looking at repairs. john harbaugh certainly flipped a circuit, yelling at that guy in a suit. as the stadium went dark, twitter lit up. my favorite tweet, quote, crew finds 30 curling irons plugged into same outlet in beyonce's dressing room. >> the woman's got a lot of nice hair, jane. >> she did.

she was fierce. >> fierce. >> awesome. >> definitely fierce. jane, thank you. >> you're welcome. still ahead, pete takes the spotlight in good, bad and ugly. find out why. and we trade our favorite tweets of the day. did yours make the cut? more "fast" straight ahead. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

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welcome back to "fast." let's play, the good, the bad and the ugly. tonight, starring our own people najarian. first, the good. back in december, pete made the bull case in a juicy mcdonald's debate. here's what he said. >> i think this is one of the best management teams that exists out there today, quite frankly. they know how to use their cash on the balance sheet to change the stores, the menus, to be able to adjust on the fly better than anybody out there in the industry. >> nice call. shares of mcdonald's up 8% since then. pete? >> i like the name and i think it can get up to $100. you have to get off because unfortunately that's where it seems to stop each time. >> now onto the bad. a couple weeks back, pete weighed in on google.

>> i see this pulling back easily towards 700 once again and giving people an opportunity. i wouldn't chase it here at all. >> well, shares of google have pulled back. they are up 8%. >> i wish i listened to grasso. he's been all over this story. kudos to you on this one. i've been pounding the table more for yahoo!. google has been the name that's actually outperformed recently. kudos to grasso. >> the flip side is he's making the case for google, so, that's your good if we said good, bad or ugly for grasso. so, grasso, what would you do with google here? could you add to shares? added to shares on friday. and, today was a down day for the market, so, you seal those big high fliers get a lot taken out of them. i would still look to add, but remember, 725 is probably your support, near-term support. don't get crazy adding up here. >> how about the ugly? what about the ugly? >> there's no ugly. >> free pass. oh.

>> hey now! oh! >> that's right. >> is that a says catch? >> when i take care of the knsn, that's what you have to wear. >> hot stuff. >> only place you can find yellow snow. >> you tweet it, we trade it. let's get to some of today's best tweets. this is for karen. james asks, does jcp nooe or any other retailers besides macy look interesting? >> i do not like jcpenney. we are short jcpenney, we have been for some time. we recently became short in the bonds. it's kind of just not -- it's just noise, but i don't see anything good happening here. >> okay. grasso, this one's for you. nick tweets, after being upgraded today by jeffries and with more than a 40% short interest, could deckers be headed higher? >> anything with the short interest like that you have to be afraid of. so, i would not be a short seller of the stock, but i

wouldn't be excited about buying it. it bottomed out in november. >> pit boss, you're up next. bonner asks you, isn't netflix a short of these lofty levels? i mean, the stock has doubled in, like, two weeks. >> great point. and it's been on a run and actually this is a name we debated the other day on the halftime report. i still like it, but you can only like it right now using the options. because it's made such a rapid move to the upside. certainly the bottom could fall out. i like the name. but they are squeezing the shorts right now. >> did you watch the house of cards, the new netflix original series? >> no. >> i had a glass-eating contest that day. >> oh. wow. >> nice. how long have you been saving that one, b.k.? >> we got your first move tomorrow when we come right back. stay tuned. hello!

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